The total number of subscribers to all its streaming services, including Paramount+, Showtime OTT, BET+ and Noggin, stood at 63.7 million at the end of June compared to 62.4 million at the end of the first quarter of 2022, a net gain of 1.3 million subscribers, broken down into 5.2 million new subscribers, minus the loss of 3.9 million subscribers in Russia due to the conflict between Ukraine and Russia.
Paramount+ continues to grow, gaining 4.9 million new subscribers of which 1.2 million subscribers need to be removed, for a net growth of 3.7 million subscribers to reach 43.3 million subscribers in total. According to Paramount Global executives, the growth is partly due to successful launches in international markets, including the UK, Ireland and South Korea. It should be noted, however, that growth in the second quarter of 2022 is the weakest of the previous 6 quarters.
However, this does not undermine the optimism of the leaders who are pleased with the quality of the programs posted on Paramount+, including: Halo, 1883, The Lost City, Sonic the Hedgehog 2, Jackass Forever, Star Trek: Strange New Worlds and the UEFA Champions League. For the record, Paramount+ offers two subscription plans in the United States: the “Essential” plan at $4.99 per month ($49.99 per year) with advertising, or the “Premium” plan at 9.99 dollars per month ($99.99 per year). According to American analysts, if Paramount+ continues to gain users, this is not necessarily the case for Showtime OTT, Noggin and BET+ which could have collectively lost around 600,000 subscribers over the period. From one quarter to another, the number of subscribers to these other group services rose from 22.8 to 20.4 million subscribers.
Paramount+ maintains its objective of 100 million subscribers by 2024, in particular with the pursuit of its international development, with, among other things, the opening in France planned for the end of the year.
Paramount Global’s DTC (Direct to consumer) division, which aggregates OTT and Pluto TV services, i.e., paid subscriptions and advertising revenue, grew 56% to $1.19 billion, including a 74% increase in subscription revenue ($830 million) and a 25% increase in advertising revenue ($363 million). By combining its two sources of income, Paramount+’s revenue increased by 120% in the quarter. But as with most recently launched services, the quarterly business ended with a loss of $445 million, or a cumulative loss since the start of the year of around $901 million. A figure that Paramount justifies by explaining that it reflects “increased investment in our direct-to-consumer services”. When we relate these figures to the European media economy, we measure the difference in means between American streamers and European media groups, which makes the competition very unequal. No media group has the means to invest such sums to supply its streaming services.
For its part, the free service which mixes programs in AVOD and in the form of FAST channels continues to gain monthly active users which stood at 70 million at the end of June 2022. Two factors are highlighted by the Paramount group: on the one hand the increase in the total number of hours watched worldwide by double digits compared to the previous year for the second consecutive quarter, and on the other hand the expansion of the international presence with the launch in the countries in partnership with Viaplay Group and the announcement of a partnership with Corus in Canada, which will be launched later this year.